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Novartis 3Q

Novartis

3Q Revenues: $9.6 billion (+9%)

3Q Earnings: $6.8 billion (+267%)

YTD Revenues: $28.1 billion (+13%)

YTD Earnings: $11.0 billion (+100%)

Comments: Net earnings included $5.2 billion from the sale of the Medical Nutrition and Gerber units. Without that boost, net earnings for 3Q would have been $1.6 billion (-12%) and $5.6 billion YTD (+7%). Pharma sales were up 2% in 3Q to $5.9 billion, and up 8% to $17.9 billion YTD. With the earnings announcement, Novartis announced layoffs of 1,260 U.S. employees (240 positions in U.S. HQ and 1020 sales reps and 3rd party reps) and that Pharma division leader Thomas Ebeling has been moved to the Consumer Health Division. Joe Jimenez will now lead the Pharma division.

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